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On The Principle Of Low Price Preference In Stock Selection

2011/3/21 15:29:00 38

Stock Market Retail Investors

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In the past few years, I have summed up four principles in stock market analysis.

These four principles are: "when buying is not urgent, when selling is not greedy, stop loss without delay, investment varieties do not disperse".


Buying is not urgent.


Some investors are very honest. It doesn't matter if they buy the stocks they like.

But it often happens that when a stock is sold, if a few cents are enough, it will always rise to a few cents.

From a few losses to a few cents or even a few yuan, the loss is bigger and bigger.

Therefore, in order to make the operation successful, in the initial purchase, there is a reasonable buy price, which is an important guarantee for the initiative of the operation.


Some investors say, if it is not urgent, how can we buy it? In fact, we can recall that when you buy a certain stock at a certain price, will you have a stock that is lower than your buying price for most of the time.

There is a big difference between retail and institutions. Institutions need months to build positions, and you only need 10 seconds to get them done, so patience is very important.

Of course, it will also happen because buying is not decisive, and stocks will rise rapidly.

But even so, cash and stock are always the safest.

Assets

You can choose other stocks in the same way.


Not greedy when selling.


"Not greedy" is not to let everyone make more money, but must have investment targets.

Yes, we have

Investment

Those who bought a stock for 8 yuan thought that they would go up to 9 yuan, and the profit of 1 yuan would be sold.

It really went up to 9 yuan. He didn't sell it again. It's hard to ride a dark horse. I can't let it run away.

In this way, it was speculative, but it turned into investment. It often missed a good opportunity to make money, which turned from losing money into losing money.


As large as a country, small to a family, the growth of wealth needs to have its own plan, a practical plan.

The same is true for investors in the stock market. Buying each stock requires a goal, which is how much money is made.

Only by strictly following the operation plan and developing good operation habits can the risk be minimized in the market.


No delay when stopping.


Fear no faults, but drag them away.

The huge losses of investors are dragged out.

Though it is easy to say, it is always difficult to do it.

If I am a shareholder, I believe it will be difficult to do so.

But if we fail to achieve these points in the market and can not overcome ourselves, it will be very difficult for us to become successful in this market.


Investment varieties do not disperse


Now there is an analysis theory in the stock market that stocks should be scattered and "eggs should not be put in the same basket".

I think this theory may apply to the mature stock market. This theory is not suitable in the emerging market of China.

Because our stock has the same risk. If eggs are placed in ten baskets, they are more likely to be broken because of their energy.


Therefore, I feel that concentration of investment and concentration of preparation are crucial.

Strictly speaking, the funds within 2 million yuan, choose three varieties is enough; 200 thousand yuan less than the funds, choose two varieties on the line.

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